The global safes and vaults market size was worth USD 6645 million in 2021 and is projected to reach USD 13620 million by 2030, registering a CAGR of 8.3% during the forecast period (2022-2030).
Safes and vaults are storage systems that provide security to all valuable commodities, including cash, jewelry, firearm, document, and others from high-risk circumstances. They are constructed of thick metal plates that are difficult to cut or damage when subjected to force or external pressure. They're primarily utilized to protect against fire, moisture, chemicals, extreme weather, theft, burglary, robbery, and other types of infiltration and illegal access. They can secure and protect cash, weapons, and ammunition, as well as sensitive documents, critical records, medical files, and other objects. Banks generally use these for their customers and are available in a wide variety of shapes and sizes. Furthermore, they require passwords, passcodes, or numerical pins to operate.
The primary reasons driving the growth of the global safes and vaults market are an increase in worries about the safety of critical physical assets, an increase in perceived threat levels, the development of retail and commercial banks, and an increase in security awareness.
The banking industry has become the fastest adopter of facial recognition, fingerprints, biometric sensors, data encryption, wireless charging, and others. In addition, with changing demands, lifestyles, and expectations toward safes and vault services among consumers, banks are mainly switching toward internet or digitalized banking by implementing technologies. Furthermore, the business model in the banking industry has tremendously changed to achieve customer loyalty by installing more integrated and high-security safes and vault services. Therefore, to provide convenience & efficient services and reduce operational costs, the banks have increased the deployment & implementation of technologies in the existing vaults model. These factors drive the safes and vaults market growth.
Safes and vaults services among consumers, banks are mainly switching toward internet or digitalized banking by implementing technologies. Furthermore, the business model in the banking industry has tremendously changed to achieve customer loyalty by installing more integrated and high-security safes and vault services. Therefore, to provide convenience & efficient services and reduce operational costs, the banks have increased the deployment & implementation of technologies in the existing vaults model. These factors drive the safes and vaults market growth.
The rising occurrence of criminal offenses has heightened people's and organizations' concerns about protecting their valuable assets in such instances. Cash-intensive environments, such as the retail industry, have seen a surge in demand for cash management safes. The developing economies of Asia-Pacific, Latin America, and the Caribbean (LAMEA) have a strong potential for retail expansion, likely to fuel market growth throughout the projection period. According to the India Brand Equity Foundation, the retail market in India is predicted to reach $1.6 trillion by 2026. Furthermore, the banking sector is expanding at a rapid pace, which encourages ATM usage. According to Accenture's ATM Benchmarking Study 2018 and Industry Report, the global installed base of ATMs is estimated to exceed 3.5 million units by 2023, driving demand for safes and vaults.
Increased consumer preference for digital transaction solutions such as mobile wallets, prepaid cards, contactless payment, and others is likely to slow market development throughout the projection period. In addition, high penetration of virtual currency may further affect market growth. Various governments are determined to support the implementation of a cashless society. The proliferation of smartphone applications for b transactions is another factor that hinders the market growth. Furthermore, the growing adoption of digital technologies in the banking sector for providing different types of payment methods to their customers hampers the development of the market.
Developing economies offer significant opportunities for banks to expand their business by strengthening technologically advanced safes and vaults to support the development of digital vault preferences in developing economies. Evolving demographics and the rise in consumerism and openness toward new technologies, such as biometric sensors, alerts of unauthorized entry, fingerprints, and mobile authenticated passwords, provide lucrative opportunities for banks across Asia-Pacific. Moreover, digital vaults are still nascent in countries such as Australia, China, India, Singapore, and South Korea. As a result, these have become the core areas for safes and vault services providers to develop and expand their operations in the coming years.
The global safes and vaults market share is segmented into type, end-user, and region.
Based on type, the global safes and vaults market is fragmented into cash management safes, gun safes & vaults, depository safes, vault & vault doors, media safes, and others. The cash management safes segment accounted for the largest share of the market and is predicted to grow at a CAGR of 6.8% over the projected period. End-user acceptance of end-of-the-day deposit management solutions that save time for counting money, cash touch points, and administrative expenses; and more excellent protection from theft and armed robbery are why cash management safes are becoming more popular. The growth of the retail business acts as one of the prime factors for developing this segment in the safes and vaults market.
Depository safes are the second-largest segment. They are also known as drop safes that facilitate the deposition of cash, bills, and other valuables to effectively carry out the cash handling process. The application of a depository safe is that anyone can make a deposit into the safe, but only the holder can withdraw items after deposition. High efficiency of storing a large amount of cash &valuables and the rise in need for enhanced protection through the use of armored plates & steel bars fuel the growth of this segment. In addition, an increase in robberies and fraud worldwide due to the pandemic situation and considerable business losses are expected to generate lucrative opportunities for depository safes in the safes and vaults market during the forecast period—for instance, Godrej & Boyce Mfg. Co. Ltd. is a company based in India that offers its products for consumer goods and other businesses. In 2019, it launched Matrix Depository safes, specially designed with a depository drawer, anti-fishing, and snap-shut mechanism, and also protect from fire and burglary. Therefore, such developments by the key players worldwide drive the market growth in this segment.
The media safes segment is predicted to grow at a significant CAGR. The vulnerability of media documents from getting damaged due to excessive temperature or moisture has initiated the demand for these safes, thereby boosting the market's growth. In addition, the increased cyber-attack rate has created the need to store highly confidential data offline, which further fuels market growth. The cost incurred due to cyber-attacks is enormous for businesses of all sizes, especially small & medium-sized businesses. Therefore, media companies are gradually increasing their media safety budgets per year. In addition, media safes are, in turn, witnessing a gradual increase in demand from organizations.
Based on end-user, the global safes and vaults market is categorized into the banking sector and non-banking sector. The banking sector segment is the dominant segment. It is predicted to grow at a CAGR of 7.3% during the forecast period. The adoption of ATMs, biometric safes & vaults, and others is increasing among the banking and fintech industries due to the rising need for technologically advanced security products and the rapid adoption of safes & vaults among the commercial and small finance banks for protecting their assets. In addition, banks are introducing advanced features to attract a more significant number of customers to protect customers' valuable assets and money. Many banks are adopting different types of safes & vaults, which, in turn, drive the growth of the market. For instance, in November 2018, ICICI bank introduced India's first Smart Vault, an automated locker facility equipped with high-end robotic technology. In this smart vault, customers can conveniently access it by swiping their debit cards and verifying their identity through biometric authentication.
The non-banking sector is the fastest-growing segment. Reduced cash handling expenses, decrease in cash touch points, and increased acceptance of application-specific products have led to high demand for cash recyclers, intelligent safes, cash management safes, and others in the non-banking sector. In addition, factors such as an increase in perceived threat levels, increased security awareness, the rapid growth of the retail market, increased financial wealth, higher standard of living, development of physical and economic infrastructure, and demand for technology-driven security systems further fuel the safes and vaults market growth.
Region-wise, the global safes and vaults market share is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific is the dominant and fastest-growing region. It is estimated to grow at a CAGR of 10% during the forecast period. The Asia-Pacific safes and vaults market is analyzed across countries such as China, Japan, India, Australia, South Korea, and the rest of Asia-Pacific. It is considered the fastest-growing region globally, owing to the increased adoption of cash management safes and significant players in countries such as China, India, and Japan. Moreover, the increase in popularity of technological products due to advanced features, such as biometric sensors, compact structure, lightweight, and high strength, is anticipated to boost the Asia Pacific safes and vaults market in the coming years. The rise in technological advancements and rapid growth of internet penetration has led to an increase in demand for digital safety vaults in the region. The emergence of smart homes and buildings is expected to revolutionize people's lives in the urban areas across the Asia-Pacific region by influencing the awareness of advanced safety mechanisms. Increased financial wealth and a higher standard of living are expected to stimulate the need for better physical and financial infrastructure.
North America is the second largest region. It is estimated to reach an expected USD 2995 million by 2030 at a CAGR of 6.8%. It includes countries such as the U.S. and Canada. North America is one of the highest revenue contributors for safety systems, owing to the rise in the presence of retail outlets, which has contributed to the market's growth. In North America, safes and vaults have been one of the driving factors for the economy for nearly a century. In addition, with an unprecedented spread of the COVID-19 pandemic, an increase in the need for the safety of valuable assets from rising thefts and natural disasters, such as earthquakes, floods, and manmade hazards, is expected to drive the demand for safes and vaults in the U.S. Rise in investment in the R&D sector along with technological advancement in advanced safes technologies is expected to drive the market growth during the forecast period. The high requirement for smart safes is expected to continue to be a strong driver for the safes and vaults market. The demand for smart safes to manage end-of-day deposits has risen due to non-banking retail outlets generating substantial amounts of cash flow through small-dollar payments.
Europe is the third-largest region. The market in Europe is analyzed across Germany, the UK, France, Italy, Spain, Russia, and the rest of Europe. In addition, increased demand for hotel and home safes, the trend of negative interest rates, European security standards, and the presence of advanced safe and vaults products contribute to the market's growth. In addition, the need for better risk management, safety solutions, and increased penetration rate of highly advanced safes among manufacturing plants, logistics centers, power plants, prisons, casinos, and others to store confidential data and money has facilitated the adoption of safes and vaults in this region. The safes and vaults industry plays an essential role in the European economic growth as this sector is responsible for providing safety to homeowners and business people concerning their valuables assets in various countries of Europe.
The key players in the global safes and vaults market are
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